Case 2 (60 marks) XYZ Company located in Country A sources all of its inputs locally, manufactures products then exports and sells the products to its subsidiary located in Country B. Country A is an emerging country that imposes foreign exchange controls. Due to recent economic situation, XYZ Company decides to review its transfer price policy, which is affected by various environmental factors. Assume the following information applies: -s-:_ Required: 1. List six environmental factors that affect international transfer pricing. Evaluate the impact of each factor on transfer pricing in this case. Explain your reasoning in detail. (24 marks) 2. Assume Company XYZ manufactures the product at a cost of $100 per unit, its subsidiary sell the product at $300 per unit. The current transfer price is $200 per unit. Compute the after-tax income per unit for XYZ Company, the subsidiary and the consolidated entity, respectively. (15 marks) 3. Continued with the information in part 2 above. Determine the revised transfer price to maximize the after-tax income of the consolidated entity. Show computations to support your answer. (9 marks) 4. In addition to tax minimization, what do you recommend that XYZ Company should consider in choosing a transfer-pricing method? (12 marks)